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Vietnam: Deposit interest rates continue to decrease
Commercial joint stock banks have continued to lower deposit interest rates since the middle of this month, a move that is expected to help reduce lending rates and support businesses.
HCM CITY — Commercial joint stock banks have continued to lower deposit interest rates since the middle of this month, a move that is expected to help reduce lending rates and support businesses.
From February 14, GPBank lowered its saving interest rates by 0.4 percentage points. The six-month term and 12-month term rates now stand at 8.9 and 9.1 per cent per year, down from 9.3 and 9.5 per cent per year, respectively.
From February 18, Techcombank also cut saving rates for VIP customers by 0.5 percentage points for both terms of 12 months and 24 months to 8.7 per cent per year. It also cut the saving rate for six-month term deposits by 0.3 percentage points to 8.7 per cent per year.
From February 14, Sacombank decreased saving rates for six-month, 12-month and 24-month terms, bringing the six-month rate down to 8.2 per cent per year, the 12-month rate to 8.6 per cent per year and the 24-month rate to 8.8 per cent per year.
On the contrary, from February 14, Sài Gòn Hà Nội Commerical Joint Stock Bank (SHB) slightly increased deposit interest rates. For online deposits, the interest rate increased to 8.42 per cent per year from 8.12 per cent per year. For the 24-month term, the deposit interest rate increased to 8.82 per cent per year from 8.52 per cent per year.
The highest deposit rate on the market is now 9.5 per cent per year (the six-month term at Sài Gòn Commerical Joint Stock Bank (SCB) and PVcombank).
Meanwhile, the 9.5 per cent deposit interest rate is also applied for 12-month and 24-month terms at Bảo Việt Bank, SCB, PVcombank, Đông Á Bank, Việt Á Bank, MSB, and Bắc Á Bank.
At a recent meeting among the State Bank of Việt Nam (SBV), commercial banks and property developers, a bank leader said the ceiling deposit rate would be brought down to 8.7 per cent per year in the coming time instead of the current 9.5 per cent per year.
The fact that commercial banks have continued to lower deposit interest rates since early this month and cut further last week has raised hope of a drop in lending rates.
Over the past week, banks such as Agribank, Techcombank, VietinBank, Sacombank, MB and SeABank have lowered lending interest rate by 1-3 per cent per year.
Agribank has announced a maximum lending interest rate reduction of 3 per cent per year for outstanding loans for real estate as of January 31, 2023.
Economist Lê Xuân Nghĩa, a member of the National Financial and Monetary Policy Advisory Council, said deposit interest rates are still too high.
Recently, the Việt Nam Banks Association called on commercial banks to keep deposit interest rates at 9.5 per cent or below to reduce lending interest rates.
SBV Governor Nguyễn Thị Hồng has constantly called on banks to cut operating costs and improve administrative procedures so as to reduce lending interest rates.
Experts said the global economy is likely to have a recession this year. At the same time, the US Federal Reserve will continue its rate hikes, which will put pressure on interest rates to continue rising. — VNS